The proposal to increase pension payments for former Members of Parliament (MPs) has faced rejection from the Salaries and Remuneration Commission (SRC). The Parliamentary Pensions (Amendment) Bill 2023, presented by Kimilili MP Didmus Barasa, aimed to amend section 8 of the Parliamentary Service Act. It sought to grant ex-MPs who served between July 1, 1984, and January 1, 2001, a monthly pension of Sh100,000. However, SRC CEO Anne Gitau stated in a memorandum to the National Assembly that pension falls under the commission’s mandate, as provided by the constitution.
The proposal, if enacted, would benefit approximately 160 retired MPs and around 130 widows/widowers. Currently, MPs who serve for at least two terms qualify for a lump sum payment of Sh7 million before tax and a monthly pension of Sh118,000. However, those who served less than ten years receive a service gratuity and a refund of their contribution.
The Parliamentary Budget Office (PBO) estimates that implementing the proposal would cost the government at least Sh180.9 million annually, adding pressure to the country’s wage bill. SRC expressed discomfort with the potential financial burden, particularly as it strives to manage the rising debt load and reduce recurring expenses.
The proposal is rooted in the recommendations of the Akiwumi tribunal, appointed in 2009 to review the terms and conditions of MPs and parliamentary employees. The tribunal suggested a monthly pension of Sh100,000 for former MPs, a recommendation endorsed by the Parliamentary Service Commission (PSC) in 2010. However, the implementation of the pension part of the report has been stalled, leading to continued advocacy for enhanced pension benefits for former MPs.
While the proposal mirrors past attempts to increase pension benefits for ex-MPs, SRC remains cautious about the potential impact on the economy and the broader implications for public officials’ pension schemes. As the debate continues, the fate of the proposed amendments lies in the hands of the National Assembly, where discussions on the Bill are expected to take place.
